GST registration in Singapore is a significant milestone for any business. The process may seem complicated but with a clear understanding of the requirements and benefits, businesses can fulfill their GST obligations confidently.
GST is a consumption tax that applies to most goods and services purchased in Singapore, with the exception of financial services, residential properties, digital payment tokens, and the importation of investment-orientated precious metals. The tax is collected at each stage of the supply chain, from manufacture to retail sale to the consumer. A business that is GST-registered is required to charge GST on its taxable supplies and remit the proceeds to IRAS. It is also required to file returns and keep records in accordance with the tax laws.
Benefits of GST Registration for Singapore Companies
Generally, businesses that expect their taxable turnover to exceed SGD 1 million for the next 12 months are required to register for GST on a prospective basis. However, a business that can demonstrate that it has made sufficient purchases from overseas vendors to account for GST on its B2B sales may apply for GST registration on a retrospective basis.
In addition, a local or overseas business with no fixed establishment in Singapore that provides services or supplies imported low-value goods to non-GST registered customers in Singapore is required to register for GST on a reverse charge basis. These overseas entities must quote their GST number on invoices, credit notes and receipts, and keep records in compliance with the tax laws.
